Sunday, April 27, 2014

Poll: Idea Q4 revenue seen up 5%, RPM likely to be flat

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Idea Cellular  will announce January-March quarter earnings on April 28. According to CNBC-TV18 poll, the telecom operator is likely to see net profit grow 10.3 percent to Rs 516 crore from Rs 467.7 crore quarter-on-quarter. Analysts expect its fourth quarter revenue to rise 5.2 percent at Rs 6955 crore versus Rs 6613.1 crore sequentially, driven by volume growth and flat revenue per minute (RPM).
                                During the period, margins are seen to be flat as higher selling, general and administrative Expense (SG&A) and network operating expense may limit any improvement in EBITDA margin. Minutes of usage (MOUs) could also increase 2.65 percent since tariffs are largely flat in fourth quarter. 
                         Also, fourth quarter interest expense will have one month impact of the debt it has taken to acquire 1800 MHz spectrum.  The stock closed at Rs 140.50, up Rs 2.20, or 1.59 percent on Friday.

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